Title 14, Uniform Consumer Credit Code

This Article shall be known and may be cited as Uniform Consumer Credit Code -- Credit Sales.

This Article applies to consumer credit sales, including home solicitation sales, and consumer leases; in addition Part F [Article 6] applies to credit sales other than consumer credit sales.

The following definitions apply to this Act and appear in this Article as follows: Amount financed § 2111 COL120106 Cash price § 2110 Consumer lease § 2106 Consumer credit sale § 2104 Credit service charge § 2109 Goods § 2105(1) Home solicitation sale § 2501 Merchandise certifica…

(1) Consumer credit sale is a transaction in which: (a) a sale of goods, services or an interest in land is made and in which credit is granted by a seller who regularly engages in credit transactions as a seller; (b) the buyer is a person other than an organization; and (c) the …

Goods; Sale of Services; Sale of an Interest in Land; Precomputed. (1) Goods include goods not yet in existence at the time the transaction is entered into and merchandise certificates, but excludes money, chattel paper, documents of title and instruments. (2) Merchandise certifi…

(1) Consumer lease means a lease of goods which a lessor, regularly engaged in the business of leasing, makes to a person, other than an or- COL120106 ganization, who is taking under the lease primarily for a personal, family, household or agricultural purpose. (2) Consumer lease…

Transferee means an assignee of the right to payment of a seller or lessor arising out of a consumer credit sale or a consumer lease, other than a person who takes an assignment in bulk as security for a loan.

Revolving charge account means an arrangement between a seller and a buyer pursuant to which (1) the seller may permit the buyer to purchase from the seller or an affiliate goods or services on credit, (2) the debts arising from purchases, credit service charges and other service…

Credit service charge means the total of (1) the time price differential or other charge, however denominated, which is paid or payable, directly or indirectly, to or for the account of the seller or his transferee, or to a person related to or designated by him, by the buyer of …

The cash price of goods, services or an interest in land means the price at which the goods, services or interest in land are offered for sale by the seller to cash buyers in the ordinary course of business, and may include (1) applicable sales, use and excise and documentary sta…

Amount financed means the total of (1) the case price of the goods, services or interest in land less the amount of any down payment whether made in cash or in property traded in, (2) the amount actually paid or to be paid by the seller pursuant to an agreement with the buyer to …

Than Revolving Charge Accounts. COL120106 (1) With respect to a consumer credit sale, other than a sale pursuant to a revolving charge account, the parties to the sale agreement may contract for the payment by the buyer of an amount comprising the amount financed and a credit ser…

(1) In addition to the credit service charge permitted by this Article, the parties to the sale agreement may contract for the payment by the buyer of the following additional charges in connection with a consumer credit sale: (a) official fees; (b) charges for insurance; and (c)…

(1) With respect to a consumer credit sale other than a sale pursuant to a revolving charge account, the parties to a sale or refinancing agreement may contract for a delinquency charge on any installment not COL120106 paid in full within 10 days after its scheduled due date in a…

(1) With respect to a consumer credit sale other than one pursuant to a revolving charge account, the parties may before or after default agree in writing to defer payment of all or part of one or more unpaid install- ments, and the seller or his transferee may make a charge not …

With respect to a consumer credit sale other than one pursuant to a revolving charge account, the seller or his transferee may by agreement with the buyer refinance the unpaid balance and may contract for and receive a credit service charge based on the amount financed resulting …

(1) This Section applies to a transaction involving a consumer credit sale other than one pursuant to a revolving charge account. (2) If a buyer has an unpaid balance owing to seller or his transferee with respect to a previous consumer credit sale to a previous Consumer Credit S…

(1) With respect to a consumer credit sale made pursuant to a revolving charge account, the parties to the sale may contract for the payment by the buyer of a credit service charge not in excess of that permitted in this section. (2) A charge may be made in each billing cycle whi…

(1) If the agreement with respect to a consumer credit sale or a refinancing contains covenants by the buyer to perform certain duties pertaining to insuring or preserving collateral and if the seller or his transferee pursuant to the agreement pays for performance of the duties …

The buyer may prepay in full the unpaid balance of a consumer credit sale of goods or services at any time without penalty.

(1) Upon prepayment in full of the unpaid balance of a precomputed consumer credit sale or a refinancing or consolidation thereof, the COL120106 unearned portion of the credit service charge shall be rebated to the buyer. If the earned portion of the credit service charge is an a…

This Article does not apply to sales with respect to which rates of credit service charge, however denominated, are filed with and subject to approval or disapproval by an instrumentality or agency of this Territory or of the United States. ---------- ARTICLE 3 DISCLOSURE [Repeal…

(1) This Article does not apply: (a) to sales in which the amount financed is Twenty-Five Thousand Dollars ($25,000.00) or more or to leases in which the amount payable under the lease is Twenty-Five Thousand Dollars ($25,000.00) or more; or (b) To sales of an interest in land. (…

No seller may divide a consumer credit sale with the intent of obtaining a higher rate of credit service charge than would otherwise be permitted by this Chapter. The excess amount of credit service charge provided for in agreements in violation of this section are excess charges…

In a consumer credit sale or consumer lease other than a sale or lease primarily for an agricultural purpose, the seller or lessor may not take a negotiable promissory note payable in installments as evidence of the obligation of the buyer or lessee. A promissory note negotiable …

Notice Of Transfer Given to Buyer. (1) With respect to a consumer credit sale or lease, other than a sale or lease primarily for an agricultural purpose, an agreement by the buyer or lessee not to assert against a transferee a claim or defense arising out of the sale or lease is …

With respect to a consumer credit sale, other than one primarily for an agricultural purpose or one pursuant to a revolving charge account, if any payment, other than the first, is more than twice as large as the average of the other payments, the buyer has the right to refinance…

A consumer lease, other than one primarily for an agricultural purpose, may not provide that a lessee who has otherwise performed his obligations under the lease shall be liable for an amount upon COL120106 termination of the lease in excess of twice the average periodic payment …

(1) With respect to a consumer credit sale, a seller may take a security interest in the goods sold, in goods installed in or affixed to the goods sold, and in property to which the goods are affixed. The seller may also take a security interest in property of the buyer to secure…

(1) In addition to contracting for a security interest in the goods sold, a seller of goods in a consumer credit sale may secure the debt arising from the sale by: (a) contracting for a security interest in goods previously sold to the buyer by the seller if there is an existing …

(1) Except as provided in subsections (2) and (3), if debts arising from two or more consumer credit sales, other than sales primarily for an agricultural purpose, are consolidated into one debt payable on a single schedule of payments, and the consolidated debt is secured by sec…

A seller or lessor may not take an assignment or earnings of the buyer or lessee as security for payment of a debt arising out of a consumer credit sale or a consumer lease. If goods or services are given as consideration for a sale of unpaid earnings, the transaction is deemed t…

With respect to a consumer credit sale or consumer lease the seller or lessor may not give or offer to give a rebate or discount or otherwise pay or offer to give a rebate of discount or otherwise pay or offer to pay value to the buyer or lessee in consideration of his giving to …

The buyer or lessee is authorized to pay the seller or lessor until the buyer or lessee receives notification of transfer of the rights to payment pursuant to a consumer credit sale or consumer lease and that payment is to be made to the transferee. A notification which does not …

With respect to a consumer credit sale or consumer lease the agreement may provide for the recovery from the buyer or lessee of reasonable attorneys' fees not in excess of fifteen percent 15% of the unpaid debt at the time suit is brought, if paid or payable to an attorney not a …

Except for reasonable expenses incurred in realizing on a security interest, the agreement with respect to a consumer credit sale may not provide for any charges as a result of default by the buyer other than those authorized by this Act. An agreement in violation of this Section…

A buyer or lessee may not give a power of attorney to any person to confess judgment on a claim arising out of a consumer credit sale or consumer lease. A power of attorney given in violation of this Section is void. ---------- ARTICLE 5 HOME SOLICITATION SALES [Repealed by P.L. …

The parties to a sale other than a consumer credit sale may agree in a writing signed by the parties that the sale is subject to the provisions of this Act applying to consumer credit sales. If the parties so agree the sale is a consumer credit sale for the purposes of this Act.

(1) With respect to a sale other than a consumer credit sale, the parties may contract for the payment by the buyer of a credit service charge not in excess of that permitted by this Section if: (a) the credit is granted by a seller who regularly engages in credit transactions as…

Except for the rate of the credit service charge, the provisions of Article 2 of this Chapter apply to a sale for which credit service charge ceilings are set by § 2602 (certain sales to individuals).

The agreement with respect to a sale for which credit service charge ceilings are set by § 2602 (certain sales to individuals) may not provide for any charges as a result of default by the buyer except for reasonable attorneys' fees and reasonable expenses incurred in realizing o…

With respect to a sale other than a consumer credit sale or a sale described in Subsection (1) of § 2602 (certain sales to individuals), the parties may contract for the payment by the buyer of credit service charge agreed to in writing. ---------- COL120106